The Department of Commerce (DoC) announced today it has reached a preliminary agreement with Rogue Valley Microdevices (RVM) for up to $6.7 million in direct funding under the CHIPS and Science Act to support the construction of a new semiconductor factory.
President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor makers to establish new manufacturing operations in the United States.
The preliminary funding deal with RVM would support its pure play microelectromechanical systems (MEMS) and sensor foundry facility in Palm Bay, Fla. The Commerce Department said the proposed funding is estimated to nearly triple RVM’s manufacturing capacity.
“The proposed investment in RVM is another example of how the Biden-Harris administration is making targeted investments across the semiconductor supply chain to reignite U.S. leadership in semiconductor manufacturing,” Secretary of Commerce Gina Raimondo said in a press release. “Because of President Biden’s CHIPS and Science Act, we are working to secure U.S.-based companies a stable, domestic supply of MEMS technology when demand is increasing across the globe.”
MEMS are small chip devices that help to integrate electrical and mechanical components. According to DoC, RVM is one of the only U.S.-based pure play MEMS foundries that specializes in the “high-mix, low-volume wafer and MEMS foundry services.”
The proposed investment would support the construction of the facility, as well as the renovation of the clean room. A clean room is an area where the environment is controlled to eliminate all dust – even the smallest speck of dust could impact the quality of the semiconductor.
RVM’s first wafers produced at the Palm Bay facility are expected to ship in early 2025, with the final completion of the facility to be completed by mid-2025.
Notably, this is the first proposed CHIPS deal in a women- and minority-owned business.
“This investment in Rogue Valley Microdevices is another demonstration of President Biden’s commitment to America’s semiconductor comeback – benefitting businesses of all sizes, including women and minority-owned businesses, and creating jobs in communities throughout the country,” said National Economic Advisor Lael Brainard.
“As one of the only U.S. based MEMS foundries, RVM is positioned to support the U.S. semiconductor ecosystem with its 300mm MEMS foundry services. President Biden’s bipartisan CHIPS and Science Act is ensuring the United States continues to lead in technological leadership and RVM’s facility in Florida will support this effort,” added Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie Locascio.
The next step for the Commerce Department after signing the preliminary agreement is to conduct due diligence on RVM’s proposed project, followed by negotiation of a final award agreement.
